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Anna Peter

The company is now actively looking at mall space with the help of Baccarose.

Mumbai , Sept. 15

THE domestic fragrance market is attracting more global players, but is posing tough challenges in terms of logistics, infrastructure, high level import duties and manpower requirements.

According to Ms Stephanie Fiederer, Operational Marketing Group Manager, Beaute Prestige International, Brazil and India have high customs duties on fragrance imports and also experience great demand for fragrances. There is a growing shift in interest from matured markets to developing countries with untested, yet high potential, consumer markets. This is especially so, since the fragrance trade is slowing in mature markets, she said.

Ms Fiederer said that it was tough to maintain market share in the US and Europe because "business in mature markets is driven by newness" — new products need to be created frequently to retain customer loyalty and interest.

According to Ms Fiederer, in India, BPI is now concentrating on growing its retail network and actively looking at mall space with the help of Baccarose.

BPI is an independent arm of Shiseido and is designer-centric. It basically markets and distributes fragrances of three designers — Issey Miyake (of Japan), Jean Paul Gaultier (of France) and most recently Narciso Rodriguez (US). Last year, the Issey Miyake brand of fragrances saw a growth of 6.5 per cent.

Of the difficulties opening up in new markets such as India and China, Ms Fiederer said that both countries presented unique problems, but business expansion in fragrances was happening faster in India. China is more of a skincare and make-up market.

Beaute Prestige International already has 12 points of sale in India and will be opening up at a new location every six weeks. The target for the end of the year is 30 points of sale.

While the costs of entry are rather stiff, the company, for now, is thinking long-term. But, Ms Fiederer estimates that it could take two years to break-even.

This particular market requires input such as training, plush retail space, samples, products, and so on. Companies that have been in the Indian market are only just breaking even.

The company launched a new Issey Miyake fragrance called L'Eau Bleue D'Issey Pour Homme. The brand has been in India for about a year with its classic called L'Eau D'Issey.

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